Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MOBA Network AB (MOBNF, Financial) reported a record-breaking second quarter, marking the best Q2 in its history.
- Revenue increased by 28% compared to Q2 2023, reaching SEK82 million.
- EBITDA saw a massive increase of 891%, attributed to both the acquisition of Wargraphs and organic growth.
- The company has a strong cash flow and cash position, enabling the repurchase of corporate bonds and further investments.
- Website traffic increased by 18%, and the company launched a new website targeting Valorant players, expanding its reach.
Negative Points
- Despite the strong performance, the gaming industry is still recovering, with many game studios and peers struggling.
- The company is operating in a globally challenging economic climate, which could impact future growth.
- There is a need to improve the sales performance of their flagship product, Porofessor, which still has untapped potential.
- The company is reliant on the ad market recovery, which may fluctuate with economic conditions.
- Future growth initiatives, such as launching more in-game apps, require careful execution to ensure success.
Q & A Highlights
Q: Can you elaborate on the factors that contributed to the record-breaking EBITDA growth this quarter?
A: Anders Ribbing, CEO: The significant increase in EBITDA, up 891%, is primarily due to our acquisition of Wargraphs, which has been a major contributor. Additionally, we have seen organic growth across our portfolio, which has also played a crucial role in this achievement.
Q: How has the acquisition of Wargraphs impacted your financial performance and strategic direction?
A: Anders Ribbing, CEO: The acquisition of Wargraphs has been instrumental in boosting our financial performance, particularly in terms of EBITDA growth. Strategically, it has strengthened our position in the gaming community and expanded our reach, allowing us to leverage synergies and network effects more effectively.
Q: What are your expectations for the ad market recovery, and how is it influencing your strategy?
A: Anders Ribbing, CEO: We are seeing positive signs of recovery in the ad market, which has already boosted our performance. We expect this trend to continue, especially with the upcoming US presidential election, which should increase our US ad inventory in Q3 and Q4. This recovery is a key factor in our growth strategy moving forward.
Q: Could you provide more details on the new initiatives and products you are launching?
A: Anders Ribbing, CEO: We have launched the valofessor.gg website, targeting Valorant players, and it will serve as the foundation for the upcoming Valofessor app, set to launch in Q3. Additionally, our flagship in-game app, Porofessor, continues to grow, and we are exploring the launch of more in-game apps based on our existing brands and products.
Q: How is the company positioned to capitalize on the current trends in the gaming industry?
A: Anders Ribbing, CEO: We are well-positioned to capitalize on the gaming industry's focus on large titles with longevity, which aligns perfectly with our product portfolio. Our strategic sales partnerships and initiatives to drive traffic and enhance network effects are designed to leverage these trends for sustained growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
